Preheat oven to 325 degrees (F). Line a baking sheet with parchment paper or a silicone baking mat. Set aside.
In a medium bowl combine the coconut flakes, sweetened condensed milk, and vanilla. Mix fully and set aside.
Using a hand mixer or a stand mixer beat the egg whites until stiff peaks form. Gently fold the egg whites in the coconut mixer until fully combined.
Scoop about 1 tablespoonful of the mixture onto the prepared baking dish. Leaving about an inch between each cookie. Flatten the cookies so they are about ½ inch thick.
Bake the cookies for 20-25 minutes, rotating the pan often until the edges of the cookies are browned.
Allow the cookies to cool for a couple of minutes and then use your thumb or the back of a spoon to make a small indention in the center of each cookie.
For Caramel:
In a medium saucepan combine the sugar and water over medium-high heat. Let cook, without stirring, for about 10 minutes or until the mixture turns a medium amber color.
While the sugar cooks warm the heavy cream in the microwave.
When the sugar is ready slowly add the heavy cream, whisking constantly for 2 minutes.
Remove from heat and add butter. Whisk until melted and smooth. Let cool.
Assembly:
Allow the caramel to cool slightly and then spoon a small amount of caramel into the indention of each cookie.
Melt the chocolate in the microwave in 15-second intervals until it is a smooth and thin consistency.